Environmental data provider Iceberg Data Lab (IDL) announced the launch of a new tool, aimed at enabling investors to measure their deforestation impact of companies, or the surface of forest which is destroyed by their activity each year. The tool currently covers 3,500 listed companies in the world, producing seven sensitive raw materials – beef (livestock), cocoa, timber, coffee, soy, palm oil and rubber in 22 countries prone to deforestation.
As per reports, the new tool studies the production of raw materials by country, as well as the varying effects of deforestation from one country to another. For example, for coffee production, arabica and robusta coffee plants require specific agricultural techniques and fertilizers and consume a significant amount of water. Yet the effects on forests and local biodiversity are different depending on the ecosystem. This country-specific data is aggregated by the tool to calculate the contribution of a company to deforestation. The contribution is then weighted according to the certifications used by the company.
